Enjoyoors is a novel omniasset liquidity primitive. Stake anything, earn yield, and, for DeFi products, tap into a rich source of liquidity.

Enjoyoors unlocks the yield and staking potential of any crypto asset and provides a Liquidity Mainline for DeFi products to tap into a new, powerful source of liquid value from all over Web3.

The protocol introduces a foundational infrastructure that allows any product to succeed in liquidity competition. The Liquidity Mainline nourishes everyone with Enjoyoors liquidity — whether it is a staking protocol, DeFi protocol, or entire blockchain ecosystem.

With Enjoyoors, we aim to eliminate existing liquidity inefficiencies, enabling myriad capital opportunities, including:

• Generating yield on any underutilized asset: governance tokens, LP tokens, LRTs, etc.

• Linking underserved ecosystems to trending yield and staking opportunities

• Sourcing new liquidity for crypto-economic security in restaking protocols

• Helping legit protocols bootstrap TVL at scale

• Introducing new opportunities for major market makers and AMMs

The protocol will operate the Liquidity Mainline, a trustless decentralized liquidity agent lending its helping hand to any application or protocol competing for TVL. It ensures that the actual value of a diverse crypto portfolio, which users stake in Enjoyoors, is routed to places where it is needed most and earns the most yield. To make this possible, Enjoyoors works as an actively managed Giga CDP that rehypothecates the value of user-deposited assets in the form of gigaAssets. These synthetic assets are softly pegged to well-known cryptocurrencies, such as ETH and BTC, and get deployed to yielding pools and protocols across DeFi.

Enjoyoors aims to maximize potential earnings on top-300 cryptocurrencies by picking protocols with the highest rewards on deployed gigaAssets while neglecting the risk. Indeed, all restaking protocols mentioned above are potential targets as well as other players offering other DeFi services like lending or yield farming. The Enjoyoors protocol transfers a cut of all yield (InsuranceFee) to the Insurance pool. In contrast, the remaining yield lands in Giga CDP and becomes available to users pro rata their stakes in the collateral basket.

Protocol design introduces robust decentralized mechanisms to guarantee the protocol's security and maintain the value of gigaAssets it issues. This document covers the main principles of the protocol architecture and some details of its implementation.

Ultimately, the purpose of the entire protocol is to manage collateral risks and maintain the value of gigaAssets. As a part of this process, we must always ensure that the total value of user deposits adequately backs the circulating supply of gigaAssets. To achieve this, the protocol monitors portfolio LTV and takes corrective actions to restore it to the target level if LTV deviates outside acceptable ranges. Here are the protocol parameters that define its risk tolerance:

The protocol's stability hinges on two critical areas: portfolio management and gigaAsset supply regulation. Enjoyoors implements a toolset that far surpasses the capabilities of traditional CDP protocols in these fields. This chapter will examine the key factors behind its effectiveness and explore its precise functionality in detail.

Enjoyoors secures LP risks of users depositing funds into Giga CDP by covering potential losses with its insurance pool. To maintain liquidity in the insurance pool, the protocol collects InsuranceFee, a cut of all yield generated in the protocol.

There are two main risks the protocol avoids via insurance:

• Slashing risks in protocols where gigaAssets are deployed

• Risks of hacks resulting in losses of gigaAssets

In both cases, a user can expect compensation from the insurance pool to cover the loss of initially staked funds. If the insurance pool is insufficiently liquid, the protocol uses its native token treasury to cover potential losses.

In the worst-case scenario, if the insurance pool and token treasury are insufficient to cover the losses, users bear the loss collectively. They commit to repaying a fraction of the lost gigaAssets proportionally to their stakes in protocol vaults before being allowed to withdraw their initial deposits from vaults.

To streamline protocol-level CDP management, Giga CDP is considered a decentralized portfolio. This portfolio comprises collateral in various tokens and liabilities in various gigaAssets, all across multiple blockchains. Collateral weights are positive, while liability weights are negative.

The protocol operates an internal accounting system built on top of this decentralized portfolio, which serves as the foundation for all liquidity management within the Giga CDP. This accounting system breaks the overall portfolio into segregated virtual markets parametrized by the $C-$D pair ($C - collateral asset, $D - synthetic gigaAsset). In simple words, the system links a specific part of the gigaAsset $D supply to a defined fraction of a particular vault containing the collateral asset $C. The diagram below illustrates the relationship between vaults and virtual markets:

Each virtual market is characterized by its market LTV parameter, defined as the ratio of the total gigaAsset $D issued in this market to the total amount of collateral asset $C virtually allocated to it. Other essential parameters that Giga CDP constantly tracks include average system LTV, total collateral, and total synthetic debt.

A combination of these parameters lay in the foundation of the portfolio management system. Its central feature is ensuring the protocol solvency and targeting a certain level for the overall portfolio LTV.

Another essential factor for successful gigaAssets adoption is the establishment of secondary markets with deep liquidity for gigaAsset swaps. As the first step, new stableswap pools will pair each gigaAsset with a respective underlying cryptocurrency. To simplify liquidity bootstrapping, we opted to use the final asset in the restaking chain, which is not exposed to additional yield opportunities, as the quote asset. For example, gigaETH will be paired with one of the popular Liquid Restaking Tokens (LRT) instead of native ETH, which is extremely hard and expensive to bootstrap.

In the second step, the protocol will incentivize liquidity providers who bring quote assets to the special module called Intelligent Peg Adapter (IPA). This module adds gigaAssets equivalent to the quote asset contributions from LPs and deploys the resulting liquidity to stableswap pools. All revenue generated in the pools through swaps and staking their LP tokens (e.g., in Convex), alongside additional rewards allocated in the Enjoyoors tokenomics, will be funneled to LPs of quote assets.

In addition to the Curve adapter described, the protocol will operate multiple other IPAs to connect Enjoyoors with external DeFi protocols seamlessly. The IPA design was inspired by Frax’s AMO, which has successfully proven its efficiency. Details of its implementation will be explored in the system architecture section below.

Considering the protocol's ultimate omni-chain nature, the most pertinent question about its architecture is the extent of its decentralization. How non-custodial and permissionless it truly is, and whether users should be concerned about the safety of their funds. Given a greenfield opportunity to design Enjoyoors, we chose to develop an architecture that addresses potential concerns such as these, ensuring the protocol is both fairly decentralized and effective.

With this intention, we restricted client-facing vaults to only accepting funds and releasing them back to depositors, prohibiting transfers to third-party addresses or any bridging functionality. Additionally, we limited the permissions of protocol components that orchestrate vault operations and outlined a roadmap for fully decentralizing orchestration. Have a look at a high-level overview of the eventual protocol architecture:

Now, we would like to consider each component separately and expand on their functionality.

All the protocol stability mechanisms discussed above are built upon a foundation of fundamental rules and parameters. These benchmarks are defined by a risk management framework that helps revisit all parameters every epoch and apply qualified adjustments if needed. These measures will allow the protocol to effectively control the stability of gigaAssets and the solvency of the entire system in the short and long run.

Let’s consider all the risks the Enjoyoors protocol addresses and identify respective strategies and rules for mitigating these risks.

Here, we focus on risks related to the protocol's technology stack and its potential vulnerabilities. The key pillars of defense against these risks are infrastructure redundancy and a rigorous approach to cybersecurity. Let’s explore how Enjoyoors prepares to address these challenges.

Enjoyoors user experience is effortless: Users deposit funds in protocol vaults, receive yield weekly, and request withdrawals anytime. While this might look similar to regular yield aggregators, it has fundamental differentiators: Users can earn a yield on almost any asset across a wide range of blockchain networks, while the protocol introduces a brand-new asset class, synthetic gigaAssets, that act as a proper yield proxy.

The actual ‘magic’ happens on the backend, and we call it rehypothecation. This process essentially boils down to unifying user deposits by minting gigaAssets and maximizing receivable yield through deployments of gigaAssets into broader DeFi verticals. Enjoyoors abstracts all this complexity from users, handling it on the protocol level. Let’s explore how rehypothecation works and see why user abstraction is the central pillar of protocol stability.

The Giga Collateralized Debt Position (Giga CDP) is the central structural component of rehypothecation. It comprises all protocol vaults, with various assets deposited by users (acting as collateral) and a basket of synthetic gigaAssets issued against these funds by the protocol. The protocol has exclusive control over the Giga CDP, and this management function serves as its primary purpose.

Generally speaking, the concept of CDPs has already been extensively explored by such protocols as MakerDAO (now Sky) and Bitshares. In their cases, CDP functionality is available for any user who locks collateral in the protocol’s smart contracts, mints synthetic stablecoins pegged to USD, and commits to a certain level of collateralization for this newly minted stablecoin debt. The user’s CDP can be liquidated if its collateral value drops below the predefined threshold due to the volatility of collateral assets.

Enjoyoors’ Giga CDP is distinctly different from this retail-oriented approach. See how Enjoyoors compares with regular CDP-based protocols:

In summary, the protocol manages Giga CDP of Enjoyoors instead of retail users, and the effectiveness of this management substantially elevates protocol stability. The exclusive control after the synthetic supply enables a risk management toolset that is much broader than any regular CDP protocol. We will discuss this in the protocol stability section.

This paper gives a comprehensive overview of the Enjoyoors protocol, including its architecture design and key details of its implementation. Enjoyoors establishes a foundational infrastructure that liberalizes access to liquidity for a wide range of DeFi players.

A straightforward way to look at Enjoyoor’s entire liquidity is to consider a portfolio of assets where collateral tokens have positive portfolio weights, and synthetic gigaAsset tokens have negative portfolio weights. With this portfolio analogy, we have the mighty modern portfolio management theory at our disposal, where we can build portfolios with different mean-variance characteristics, analyze asset correlations, pairwise cointegrations, and be very flexible regarding the portfolio objectives we target. As an example of a meaningful objective to pursue, consider the following risk optimization problem:

E.g. minimize the portfolio variance where one of the assets has a negative weight (mimicking synthetic debt). To illustrate, we’ve modeled a portfolio of 10 popular ERC-20 tokens and added ETH short to the portfolio to mimic debt in synthetic ETH. Here is how the portfolio performed on the unseen test set:

Interestingly enough, the optimal weight for the ETH short turns out to be around 0.53 or 53%. This is not achievable with collateralized portfolios, as the entire collateral value is only 47% of the portfolio. This is already not a collateral-backed synthetic system, but rather a synthetically hedged portfolio, and is extremely capital efficient. Yet such a portfolio is very hard to manage, as hedging always incurs additional costs. So, initially, Enjoyoors will operate as an overcollateralized system. We then aim to gradually migrate from an overcollateralized system to a hedged portfolio approach as we build liquidity and momentum.

Interchain communication enables the orchestrator appchain to interact with Enjoyoors' blockchain infrastructure in a trustless, secure, and dynamic manner. At launch, Enjoyoors will support:

• Ethereum and top 10 L2s: Arbitrum, Base, Polygon, Optimism, Linea, and others.

• High-TVL chains: Solana, Aptos, Sui, Sei, TON.

• Other L1 chains: Near, Cosmos, Stellar, Cardano, Polkadot

As the protocol matures, more networks and assets will be added. To handle diverse interchain communication, Enjoyoors has developed its own interchain communication protocol that is extensible to a full-scale cross-chain lending and borrowing facility.

The protocol uses specialized messages for token transfers and attestations, ensuring accurate execution on destination chains. Relayers facilitate this process.

Relayers are intermediary services observing blockchain events and securely transporting data to/from the orchestrator appchain. Implemented as restaking Actively Validated Services (AVS), relayers:

• Monitor vault interactions and blockchain events.

• Capture events, form messages, co-sign them using MPC, and send them to the orchestrator appchain.

• Use their private key shares via an MPC scheme to trigger specific smart contract methods:

  • Minting/Burning synthetics for system stability.

    • Staking/Unstaking synthetics to manage supply and earn yield.

• Combining actions, e.g., unstake + burn or mint + stake.

This architecture ensures secure, efficient interchain operations for Enjoyoors.

Enjoyoors achieves protocol stability and solvency through gigaAsset supply regulation. Supply regulation is an automated portfolio LTV management where the algorithm evaluates key LTV parameters across available assets and makes decisions regarding gigaAsset mints, transfers, and burns accordingly. Enjoyoors tracks the following LTV parameters:

Here is a high-level overview of how the algorithm functions in principle:

1. We keep PortfolioLTV in a [lowerLTVBound; upperLTVBound] band around TargetLTV:

   1. if PortfolioLTV > upperLTVBound: decrease gigaAsset supply so PortfolioLTV = TargetLTV. May involve TWAP wind down.

   2. if PortfolioLTV < lowerLTVBound: increase gigaAsset supply so PortfolioLTV = TargetLTV. May involve TWAP issuance.

2. We keep MarketLTV below an upperLTVBound:

   1. if MarketLTV > upperLTVBound: decrease CDP debt by re-assigning gigaAsset debt to other markets whose current LTV < average LTV. markets should be doubly sorted first in order of increasing LTV, then in order of decreasing collateral value (e.g. given same LTV levels we prefer to reassign debt to a larger market first). May involve TWAP wind down.

   2. if MarketLTV < lowerLTVBound: increase synth debt so MarketLTV = TargetLTV. May involve TWAP issuance.

If the above algorithm fails to find enough liquidity to wind down, the protocol temporarily reassigns an excess synthetic debt to the external liquidity for a fee:

1. Insurance Pool. Enjoyoors sets aside a fraction of the earned yield to accumulate in the insurance pool, which acts as liquidity of last resort. The pool's permissionless nature allows for further liquidity provision for a fee/rev share.

2. Protocol token staked in Governance. Under the anticipated tokenomics mechanics, users stake protocol tokens or Token/[ETH] DEX LP tokens to receive veTokens. The protocol may assign synthetic debt to this staked liquidity during adverse market conditions. veToken holders benefit by earning additional tokens through inflation and/or receiving boosted revenue shares (external yield from gigaAssets) when synthetic debt is allocated to them.

As a final line of defense, the protocol may decide to wind down liquidity in gigaAsset AMM pools. Backtesting and simulations in accordance with our risk framework showed that the initial TargetLTV parameter the Enjoyoors protocol will work with is 0.6 with 0.2 DeltaLTV, effectively clipping the LTV levels in the protocol in [0.4 … 0.8] range. The target and the delta will be re-evaluated once per epoch (see the table above).

This section examines the risks associated with potential adverse market conditions that could impact the protocol's portfolio of assets. Since these risks are external and unavoidable, Enjoyoors must be thoroughly prepared to mitigate their effects and maintain resilience if they materialize.

Epochs are a foundational feature of the Enjoyoors protocol. An epoch is a specific time frame during which the protocol state remains constant in normal conditions. During one epoch, key protocol parameters remain static as they were defined before the beginning of the epoch. At the same time, gigaAssets sit in target protocols according to the initial distribution (unless some urgency occurs—immediate liquidity rebalancing, user withdrawals, etc.).

Epoch duration is also a parameter defined by governance. The most reasonable period for the epoch seems to be seven days, though it can be amended through governance voting in the future.

Before the next epoch starts, the protocol revisits its key parameters: the risk management framework helps recalculate Giga CDP parameters; DAO and factual yield assessment help revisit the list of onboarded target DeFi protocols; DeFi protocols from the list obtain weights to receive gigaAsset distribution accordingly, etc.

Epochs directly impact deposits and withdrawals, too. Deposits start accruing yield from the beginning of the epoch, followed by the one when the deposit was made. Similarly, withdrawals can be claimed at the end of the epoch, followed by the epoch when requested.

Another important aspect of capital and risk management involves establishing rules for gigaAsset deployment, which define target weights for gigaAsset allocations across specific types of DeFi protocols. Adhering to the risk framework, these weights prioritize exposure to more established, lower-risk protocols while minimizing potential risks associated with less familiar or higher-risk ones. The general categories of protocols Enjoyoors works with are shown below:

The initial distribution of weights is intentionally conservative. These numbers are subject to change based on risk assessment and governance decisions in the future.

Current distribution weights will be most frequently affected by the increase in synthetic supply (due to liquidity entering the protocol) or the decrease in synthetic supply (due to de-risking or liquidity exiting the protocol).

As the protocol deploys gigaAssets to various DeFi verticals and protocols, the resulting yield originates in various tokens or even points. Managing this dispersion of assets would be highly inconvenient for Enjoyoors users, so reward auctions are designed to streamline the process and enhance the user experience.

In a nutshell, reward actions are smart contracts deployed on supported blockchains that periodically auction off accumulated rewards for gigaAssets on behalf of the orchestrator. Auctions offer tokens and points to participants who bid to acquire them at a fair price nominated in gigaAssets. If points are non-transferable, auction participants should wait until the protocol claims token rewards in exchange for points distributed to them afterward.

Here is a diagram that illustrates the flow of reward auctions:

1. The Target Protocol generates rewards and sends them to the Rewards Treasury.

2. The Rewards Treasury emits the corresponding event.

3. The Relayer reads the event from Rewards Treasury.

4. The Relayer reaches a consensus.

5. The Relayer broadcasts signed transactions to the Auction.

6. The Participant starts an auction.

7. The Participant makes a bid for open lots.

8. The Auction chooses the auction winner.

9. The Participant receives a reward voucher for winning the auction.

10. The Auction issues a reward voucher for the winner (Participant).

11. The Auction sends a portion (determined by Governance) of gigaAssets to the Insurance Pool.

12. The Auction sends gigaAssets to gigaCDP. These funds are distributed to the depositors as rewards for their participation.

13. The Winner (Participant) redeems rewards using a reward voucher from Treasury.

The Enjoyoors protocol operates a distributed infrastructure across dozens of public blockchains, encompassing major EVM-compatible chains as well as popular non-EVM L1s. Most of these chains host Enjoyoors vaults for depositing crypto assets, while others feature a comprehensive gigaAsset infrastructure. Respectively, the gigaAsset infrastructure comprises the following main components: gigaAsset managers, gigaAsset liquidity pools, and Intelligent Peg Adapters (IPAs).

Vaults Vaults are smart contracts on end-user blockchains that serve as the primary interface between users and the Enjoyoors protocol. Users can deposit or withdraw whitelisted assets, subject to a two-period request-withdrawal system. Withdrawal requests are submitted during the current epoch, but funds are released in the next epoch after rebalancing.

Epochs, initially set at 7 days, balance the need for quick reactions to market changes with minimizing transaction costs and aligning with unstaking periods. If “bad debt” arises from slashing in restaking protocols, it is redistributed among collateral holders, reflecting their role as ultimate yield earners and risk bearers.

gigaAsset Managers gigaAsset managers are smart contracts deployed across supported blockchains to manage gigaAssets. They:

• Mint and stake gigaAssets for yield or unstake and burn them to adjust supply.

• Collect rewards and periodically auction them for gigaAssets.

• Handle “bad debt” from slashing or hacking by redistributing it among collateral holders.

gigaAsset Liquidity Pools (AMMs)

Stableswap AMM Pools, seeded by Enjoyoors in conjunction with LPs, provide deep secondary liquidity for gigaAssets. Pools are incentivized through internal (token incentives) and external (gauge voting) mechanisms. Users and the protocol share LP tokens, which can be auto-staked in Enjoyoors or earning yield via Convex.

Intelligent Peg Adapters (IPAs) IPAs are specialized contracts maintaining gigaAsset peg stability by managing a pre-allocated supply of gigaAssets. They interact with liquidity pools based on the following criteria:

• Provide gigaAssets: Allowed if the price is consistently above 1.0 and within a deviation range compared to oracle prices.

• Withdraw gigaAssets: Allowed if the price is consistently below 1.0 and within a specified deviation range.

As we mentioned above, the first supported IPA, the Curve Pool IPA. This IPA dynamically deposits or withdraws gigaAssets to stabilize the peg, with actions governed by protocol-defined conditions.

The orchestrator is the central hub of the Enjoyoors protocol. From an architectural standpoint, we envision the orchestrator as an application chain that hosts and manages several core elements of the Enjoyoors protocol:

• Giga CDP which controls the supply and the distribution of gigaAssets.

• Portfolio Management System manages the Giga CDP in a semi-automated fashion according to governance-set risk objectives. It also decides on synthetic portfolio rebalancing based on governance-set target protocols and allocation weights. Makes synthetic supply management decisions based on governance-set risk parameters (LTV target and ranges, collateral supply caps).

• Enjoyoors DAO manages the protocol in a decentralized fashion: adds new collateral, manages oracle feeds, takes emergency actions when required, and sets risk parameters and target allocation parameters.

We will consider bootstrapping the DeFi ecosystem on top of our appchain with sophisticated applications leveraging liquidity in gigaAssets.

Recent developments in the RWA space make its exponential surge inevitable in the foreseeable future. Once this sector matures, we can anticipate a rapid influx of real-world value into the crypto market, with a high-level estimation of $16T worth of assets tokenized by 2030. T-bills and other fungible assets are sort of low-hanging fruit, and some developments on top of them are already making waves in crypto (Franklin Templeton’s RWAs are notable examples).

However, things are getting more complicated when it comes to other less ‘fungible’ assets. Most DeFi protocols still find it challenging to adopt these assets due to difficulties in standardizing their valuations and risk assessment. A lack of reliable data feeds that supply accurate and temper-proof data on RWAs adds to this complexity.

The Enjoyoors protocol essentially supports long-tail assets and doesn’t rely on regular DeFi liquidations through collateral sell-offs. Its more flexible design enables unifying non-standardized RWAs and deploying their value as gigaAssets to vanilla DeFi protocols. This approach can facilitate a real breakthrough in RWA adoption across the broader DeFi.

We already touched on Intelligent Peg Adapters (IPAs), specialized contracts set to maintain the stability of the gigaAsset peg. The first IPA the Enjoyoors protocol will support is the Curve Pool IPA. It can deposit or withdraw gigaAssets from a number of gigaAsset liquidity pools approved by governance.

IPAs hold a pre-allocated supply of gigaAsset tokens for peg stabilization efforts. IPA may provide gigaAsset to the pool if the following requirements are met:

• Providing is not paused.

• gigaAsset price is above 1.0 (in relation to the underlying) or has been consistently above 1.0 over a specified period defined by a protocol.

• Price consistency check: the current AMM state price and oracle price of the synthetic must be within a specified deviation range.

IPA may withdraw gigaAsset from the pool if the following requirements are met:

• Withdrawals are not paused

• gigaAsset price is below 1.0 (in relation to the underlying) or has been consistently below 1.0 over a specified period defined by a protocol.

• Price consistency check: the current AMM state price and oracle price of the synthetic must be within a specified deviation range.

Another notable IPA is designed to support pools in external lending protocols. It manages the supply of gigaAssets deployed to lending pools and adjusts the interest rate curve to indirectly incentivize or discourage demand for gigaAssets. This IPA can withdraw funds from the pools to increase liquidity utilization (and interest rates, respectively) or supply additional gigaAssets to lower utilization and stabilize rates as needed.

Another promising direction to explore is creating a full-scale DeFi ecosystem based on the Enjoyoors Orchestrator AppChain. The AppChain will operate on top of an established sidechain SDK and can accept future deployments of third-party smart contracts. With the extraordinary TVL potential, Enjoyoors can offer liquidity support on demand and become a home for highly liquid DeFi products.

Supporting this direction, the market lately saw a few successful launches of new blockchain ecosystems based on existing appchains tailored originally for specific projects. Hyperliquid is probably the most exciting benchmark that conducted an ultra-successful community-driven launch, followed by exponential growth to the impressive $9.72B market capitalization at its peak as of writing.

Talking about particular projects that could take the most advantage of launching on Enjoyoors, we can distinguish the following categories:

• Money markets

• AMMs

• Synthetic asset protocols (decentralized stablecoins and others)

• RWA projects

• Restaking / shared security protocols

Projects rolled out in the Enjoyoors DeFi ecosystem can expect gigaAsset liquidity injections and vast staking opportunities for assets they emitted.

Enjoyoors protocol requires up-to-date oracle prices to evaluate the collateral tokens and synthetic gigaAssets. Oracles will be integrated into the Orchestrator appchain. Enjoyoors will use several data sources, both public and private, to provide Orchestrator with timely information on collateral and synthetic debt assets. These sources include CeFi exchanges, DeFi exchanges, OTC markets, and our primary oracle providers (Pyth, ChainLink, and Redstone).

Available market data usually provides token prices in relation to USD or USD-pegged stablecoins. Enjoyoors implements adapters that price collateral tokens in corresponding synthetic debt assets and unify pricing and valuation across the system.

The price step and update frequency parametrize Oracle price feeds: By default, Enjoyoors will receive a price update that triggers Giga CDP re-evaluation every hour or if the token's price moves more than 1% (translating to ~ a 1% change in the LTV of the corresponding virtual market).

This paper gives a comprehensive overview of the Enjoyoors protocol, including its architecture design and key details of its implementation. Enjoyoors establishes a foundational infrastructure that liberalizes access to liquidity for a wide range of DeFi players. With this important mission in mind, we would like to conclude by sharing some aspects of our strategic vision for the protocol’s potential development pathways.

In conclusion, we would like to outline the key priorities for our future efforts to ensure the Enjoyoors protocol’s success and establish it as a foundational component of the crypto space.

Firstly, we are committed to the maximum possible decentralization of the Enjoyoors protocol and will take all necessary actions to foster this mission. The first step toward decentralization for Enjoyoors was designing trustless vaults that are secure and immune to being compromised or drained by transferring user funds to third-party addresses. The next logical step in this critical path is to advance vault orchestration, such as transitioning to AVS and further developing the proprietary L3 network. Lastly, enhancing and decentralizing protocol governance is crucial, ensuring Enjoyoors DAO remains transparent and accessible to everyone who wishes to voice their opinions.

Another key priority for us is excelling in the protocol's cyber security. We have engaged several prominent security audit firms to perform continuous audits of our code base. These partners were meticulously handpicked for their expertise in auditing specific tech stacks and their proven track records. All production vaults and system components are thoroughly tested with extensive coverage and undergo rigorous security audits before deployment. Additionally, the protocol incorporates an automated real-time monitoring system that tracks all activity across Enjoyoors, and it can suspend the protocol’s operations if suspicious actions are detected.

We prioritize openness and inclusivity in Enjoyoors. Instead of forming alliances or being biased against specific ecosystems or projects, we set transparent rules and criteria for potential partners that may engage with the protocol. All new assets or protocols can pass transparent voting by Enjoyoors DAO and be added to the protocol vaults or become eligible for gigaAsset deployments. The above rules in conjunction with the protocol’s risk framework that we covered above ultimately guide the DAO's decisions.

Last but not least, we put our community at the forefront. Our strategic goal is to keep community members informed and educated about the technology behind Enjoyoors and all further developments. For these reasons, we will continuously create articles and other educational content, host regular interactive community events (community calls, AMAs, etc.), and conduct webinars and workshops. We are dedicated to providing real-time community support through social channels like Telegram and X, ensuring that all news and updates are shared promptly as they become available.

Blockchain Networks component list:

The Vault is a non-upgradeable smart contract deployed across various blockchain networks, enabling stakers to deposit tokens from a predefined list of approved assets.

Main Vault Operations:

• Deposit The Vault provides a single entry point for Enjoyoors users, allowing them to deposit whitelisted assets.

Main Operations of the gigaAsset Manager:

• Mint gigaAssets

• Burn gigaAssets

• Stake liquidity in target protocols

• Unstake liquidity from target protocols

• Claim rewards from target protocols

• Deposit liquidity into the IPA

• Withdraw liquidity from the IPA

Rewards earned through liquidity provision are claimed and routed to the Rewards Treasury. These rewards may include tokens, points, or other assets provided by Target Protocols as incentives for liquidity participation.

The IPA employs a combined mechanism to maintain peg stability during price deviations from the target range:

• If sufficient liquidity is available in the contract, it can perform token swaps to adjust the peg. This mechanism directly impacts the token reserve amounts in the pool, bringing the peg back to the target range.

The first IPA that the Enjoyoors protocol will support is the Curve Pool IPA.

AVS Relayer component list:

To ensure the security of all transmitted messages, Relayers sign each message using their cryptographic keys, guaranteeing the authenticity and reliability of the data.

Relayers leverage restaking infrastructure and are deployed as an Actively Validated Service (AVS ) to enhance security and operational consistency.

4. Rewards auctions.

6. Slashed debt auctions.

Execution Layer This layer is responsible for executing computations on the blockchain. Within the Enjoyoors ecosystem, it efficiently processes transactions and executes smart contracts while ensuring security and performance.

Data Layer The data layer handles the storage and management of all information within the blockchain network. Key aspects of this layer include data integrity and accessibility. By leveraging decentralized storage networks, this layer enhances redundancy, retrieval efficiency, and overall security, which contributes to the scalability and reliability of the ecosystem.

Consensus Layer This layer is essential for maintaining the security and integrity of the blockchain. It defines the validation rules and processes for adding new blocks to the chain. Given Enjoyoors’ interoperable approach, selecting a consensus mechanism that enables cross-chain communication is a strategic priority. A hybrid consensus model, combining Proof-of-Stake (PoS) with additional consensus methods, is under evaluation to ensure both security and seamless cross-chain transactions.

Settlement Layer The settlement layer is responsible for the finalization of transactions within the blockchain. In an interconnected environment, this layer must be robust to facilitate fast and secure settlements across multiple chains.

Launching the L3 sidechain is an essential milestone toward the complete decentralization of orchestrating Enjoyoors vault. The Appchain will hold the actual state of important static and dynamic protocol parameters, while further actions (rebalancing, commands to vaults, etc.) will also be transparently reflected on the sidechain.

The AppChain can accept future deployments of third-party smart contracts, opening up a promising opportunity to create a full-scale DeFi ecosystem based on the Enjoyoors Orchestrator AppChain. With its extraordinary TVL potential, Enjoyoors can offer liquidity support on demand and become a home for highly liquid DeFi products.

Advantages of running own L3:

1. Saving on fees – many transactions will be free - L3 solutions significantly reduce transaction costs, as most operations are executed off the main chain and then aggregated for confirmation on L2 or L1. - In some cases, transactions can be entirely free due to subsidization or other fee-covering mechanisms.

2. Low-cost transactions – crucial for auctions - High gas costs make auctions (e.g., NFT sales or MEV strategies) less accessible to users. L3 solves this problem by offering near-zero fees. - L3 can implement specialized transaction pricing models, such as fixed minimal fees or payments in ecosystem tokens.

Comparison with other solutions: - Ethereum L1: High fees (hundreds of dollars during peak congestion). - L2 (Arbitrum, Optimism): Fees around $0.1–$0.5. - L3: Fees can be lower than $0.01 or even zero

3. High transaction speed without competition - L3 allows for transaction prioritization mechanisms, eliminating the need for competition for block space, as seen in L1 and even L2. - Technical transactions (such as liquidations, rebalancing, and arbitrage trades) can be prioritized, which is critical for DeFi.

4. Customizability – tailored execution environments - L3 networks offer greater flexibility, allowing developers to customize execution environments, fee structures, and consensus mechanisms. - This makes it possible to optimize network performance for specific use cases such as The Orchestrator Appchain.

Running on top of the Orchestrator AppChain, the Enjoyoors Management System will be governed by the Enjoyoors native token. The token facilitates decisions regarding gigaAssets liquidity deployments to target protocols, configuring core system parameters and stakes for stability, and maintaining system security.

The system’s foundation lies in its open-source nature, which enhances transparency and security while enabling iterative improvements. This openness encourages active participation from the developer community, facilitating problem resolution, system enhancements, and fostering trust in its operations.

The Enjoyoors Management System is integrated with a wide range of blockchains through AVS Relayers, including major EVM-compatible networks and popular L1s. Leveraging its proprietary interchain communication protocol, Enjoyoors ensures secure and trustless data. This seamless interaction with oracle systems and external users enables the protocol to operate efficiently across diverse ecosystems.

Available market data usually provides token prices in relation to USD or USD-pegged stablecoins. Enjoyoors implements adapters which price collateral tokens in corresponding synthetic debt assets and unify pricing and valuation across the system.

Advanced Cryptographic Algorithms State-of-the-art cryptographic algorithms will ensure the utmost safety of transactions. These algorithms are designed to act as the first line of defense against unauthorized access and cyber threats, providing a secure environment for users and developers alike.

Regular Audits and Security Assessments To maintain the highest standards of security, Enjoyoors Protocol will schedule regular security audits and assessments. These evaluations will be instrumental in identifying and mitigating potential weaknesses in the system, fostering a proactive approach to security that is critical in the blockchain sphere. The list of audits will be provided here once published in the project's Github (TBA).

gigaCDP stores aggregated records of all user deposits within the protocol, regardless of the blockchain network in which they were made. These deposits are treated as collateral and are used to open CDPs (collateralized-debt positions).

The module stores predefined average LTV ratios for tokens supported by the protocol. gigaCDP calculates the maximum amount of gigaAssets that can be minted based on the LTV, ensuring the minted supply is always backed by sufficient collateral.

When External users want to claim their assets, they submit withdrawal requests to gigaCDP, which verifies collateral availability and generates vouchers for approved withdrawals. These vouchers specify the amount of tokens that can be withdrawn on the supported blockchain. External users can use them to redeem their tokens.

gigaCDP Main Operations:

2. Fetch Claim Voucher: External users fetch claim vouchers to redeem their tokens.

At its core, this module is responsible for defining parameters that maintain the protocol's stability and efficiency. Its responsibilities include:

• Determining which tokens to accept and in which blockchain networks.

• Approving strategies for redistributing and rebalancing liquidity.

• Establishing the protocol's risk parameters.

In addition to gigaAssets, governance tokens staked within the protocol may also serve as a reserve fund. These tokens can be used to pay rewards to stakers and address other potential losses, further enhancing the protocol's resilience and sustainability.

The duration of an epoch is a parameter determined by Governance. A seven-day period is currently considered the most reasonable, although this can be adjusted through governance voting.

Epochs also impact deposits and withdrawals. Deposits begin accruing yield starting from the epoch following the one in which the deposit was made. Similarly, withdrawals can only be claimed at the end of the epoch following the one in which the withdrawal request was submitted.

Deposit process step-by-step:

@startuml
autonumber
actor "External user"
participant Vault
participant Relayer
participant "gigaCDP"
participant PMS
participant "gigaAsset Manager"
participant "Target Protocol"
participant "AMM Pool"

== Epoch 1 ==
"External user" -> Vault: Deposit assets
Vault -> Vault: Emit event
Relayer -> Vault: Listen to events
Relayer -> Relayer: Reach consensus
Relayer -> "gigaCDP": Broadcast signed transaction
"gigaCDP" -> "gigaCDP": Add the deposited assets to the queue

== Epoch 2 ==
"gigaCDP" -> "gigaCDP": Open / update CDP
"gigaCDP" -> "gigaCDP": Calculate actual and target level of gigaAssets
"gigaCDP" -> "gigaCDP": Emit event
PMS -> "gigaCDP": Get actual and target level of gigaAssets
PMS -> PMS: Recalculate portfolio weights
PMS -> PMS: Decide on gigaAssets liquidity rebalancing
PMS -> PMS: Emit event
Relayer -> PMS: Listen to events
Relayer -> Relayer: Reach consensus
Relayer -> "gigaAsset Manager": Broadcast signed transaction
"gigaAsset Manager" -> "gigaAsset Manager": Mint gigaAssets
"gigaAsset Manager" -> "Target Protocol": Supply liquidity
"gigaAsset Manager" -> "AMM Pool": Supply liquidity
@enduml

Withdraw process step-by-step:

@startuml
autonumber
actor "External user"
participant Vault
participant Relayer
participant "AMM Pool"
participant "gigaCDP"
participant PMS

== Epoch 1 ==
"External user" -> Vault: Send withdraw request
Vault -> Vault: Emit event
Relayer -> Vault: Listen to events
Relayer -> Relayer: Reach consensus
Relayer -> "gigaCDP": Broadcast signed transaction
"gigaCDP" -> "gigaCDP": Add the request to the queue

== Epoch 2 ==
"gigaCDP" -> "gigaCDP": Close / update CDP
"gigaCDP" -> "gigaCDP": Calculate actual and target level of gigaAssets
"gigaCDP" -> "gigaCDP": Emit event
PMS -> "gigaCDP": Get actual and target level of gigaAssets
PMS -> PMS: Recalculate portfolio weights
PMS -> PMS: Decide on gigaAssets liquidity rebalancing
PMS -> PMS: Emit event
Relayer -> PMS: Listen to events
Relayer -> Relayer: Reach consensus
Relayer -> "gigaAsset Manager": Broadcast signed transaction

"External user" -> gigaCDP: Try to receive claim voucher

alt External user bad debt > 0
"gigaCDP" -> "External user": Return reject message with debt details
"External user" -> "AMM Pool": Buy gigaAssets
"External user" -> "gigaCDP": Repay debt

else bad debt = 0
"gigaCDP" -> "External user": Return claim voucher
end

"External user" -> Vault: Claim assets
@enduml

Auction step-by-step:

6. The Participant starts an auction.

7. The Participant makes a bid for opene lots.

9. The Participant receives rewards voucher for winning the auction.

@startuml
autonumber

actor Participant
participant "Target Protocol"
participant "Rewards Treasury"
participant Relayer
participant "gigaCDP"
participant "Auction"
participant "Insurance Pool"


"Target Protocol" -> "Rewards Treasury": Send rewards
"Rewards Treasury" -> "Rewards Treasury": Emit event
Relayer -> "Rewards Treasury": Listen to event
Relayer -> Relayer : Reach consensus
Relayer -> "Auction": Broadcast signed transaction
Participant -> "Auction": Start auction
Participant -> "Auction": Make a bid
"Auction" -> "Auction": Choose a winner
Participant -> "Auction": Request rewards voucher 
"Auction" -> Participant: Issue the rewards voucher
"Auction" -> "Insurance Pool": Send gigaAssets
"Auction" -> "gigaCDP": Send gigaAssets
Participant -> "Rewards Treasury": Redeem the rewards
"Rewards Treasury" -> Participant: Transfer the rewards
@enduml

Volatility Risks

Affects: Сritical LTV

Enjoyoors needs a robust measure to identify collateral portfolio constituents' losses in the worst-case scenario. Enjoyoors uses statistical bootstrap to gauge the volatility risk and to calculate critical LTV levels (discounts):

• Generate return distribution of the collateral asset in question.

• Approximate distribution parameters (mean, variance, skewness, jumps, etc.)

• Simulate N return paths using estimated parameters.

• Calculate expected tail loss: take an average worst 1% return from all simulations.

• Use this value scaled with the relevant period to calculate critical LTV levels and confidence bands.

Correlation Risk

Affects: relative collateral portfolio weights and supply limits

Deciding what assets to accept as collateral is a portfolio allocation and a portfolio optimization problem. If Enjoyoors protocol manages to collect and maintain a well-diversified portfolio of collateral assets that will yield the desired risk/return characteristics.

Correlation helps identify the right collateral portfolio weights. Unfortunately, calculating and predicting correlations is hard. There is also plenty of academic evidence that the naive equal weighting is pretty hard to beat. We’re also faced with limited or absent data for correlations calculation. Despite all the pitfalls described above, it’s always good to know how well-diversified your portfolio is. To gauge this, Enjoyoors calculates a portfolio diversification multiplier and sets an objective to maximize it.

Consider a simple example of two asset portfolios where the assets are perfectly correlated and have the same annualized volatility of 100%. The portfolio volatility will be the same as the volatility of its constituents: 100%, and there is no diversification benefit; the multiplier is 1.

If the correlation between two assets falls to 0.5, the resultant portfolio volatility will be 86.6%, and the diversification multiplier will be 100% / 86.6% ~ 1.15. Reducing correlations even further to 0.0 yields portfolio volatility of 7.07% and a multiplier of 1.41.

You get the idea: the more the collateral portfolio is diversified, the less risk (volatility) it has. The diversification multiplier is then calculated concerning the volatility target (which, in the case of Enjoyoors, is the volatility of the underlying synthetic).

Liquidity Risk

Affects: critical LTV, collateral supply limits.

Liquidity risk is pretty straightforward to understand: The less liquidity there is on the venues where the collateral asset is traded, the higher the price impact will be when Enjoyoors manage asset positions (for example, when rebalancing a portfolio, or liquidating part of the position to meet LTV thresholds). To gauge the market liquidity, Enjoyoors has developed an in-house scoring system that calculates the real-time liquidity score of an asset, taking into account the following factors:

• TVL: Combined liquidity (TVL) on all available AMMs and DEX-es where the asset is traded.

• CEX presence: Presence or absence of liquidity on centralized exchanges.

• Liquidity depth: 2%, 5%, 10% depth on both DEXes and CEX-es

• Locked liquidity share: how much liquidity on DEX-es is locked due to LP staking.

• Liquidity profile: any potential skew or poor liquidity on the bid side should be considered when calculating the final liquidity score.

All assets are ranked based on the above metrics and are then assigned a final score between 0 and 100. 0 is no liquidity or worst liquidity conditions, while 100 roughly corresponds to an ability to immediately realize $1M of the asset with less than 2% market impact.

Exposure Risk

Affects: relative collateral portfolio weights and supply limits

This risk is closely tied to Liquidity risk, and broadly speaking, it gauges what the supply limits on all of the collateral assets supported by the Enjoyoors protocol should be. On a very basic level, it doesn’t make sense to configure Enjoyoors pools to allow for 1B of collateral assets in asset A if aggregate combined liquidity on all AMMs in asset A is 500M. Instead, the supply limit should be a fraction of the 500M, not the out-of-touch 1B assets.

Qualitative Risk

Affects: collateral asset market volatility and the critical LTV (indirectly).

Enjoyoors uses public and proprietary information sources about each company behind each collateral asset to assess its intangible quality. Again, we built a proprietary ranking model that helps us compare different assets using hardly quantifiable metrics. Here are some of the factors we consider, among others, when building our qualitative risk-scoring model:

• Investor list, round information, valuations.

• Asset holdings distribution - number of holders and strong hands.

• Social media score (like X score, number of influential and KOL followers, etc.)

• Centrality scores and connection rankings.

• Average engagement rates on social media.

• Sentiment analysis and discord activity.

• Competition and SWOT analysis, similarity score in relation to competitors.

• Legal and regulatory compliance and obstacles.

Other Protocol Risks

Other risks of the Enjoyoors protocol may be broken down to the following:

Technology risk: refers to the potential for financial or operational loss due to flaws, vulnerabilities, or malicious actions within any part of the Enjoyoor’s technology (smart-contracts, appchain, relayers). To mitigate these risks Enjoyoors will perform multiple audits of its core tech, as well as integrate with real time threat monitoring services which will be able to pause Enjoyoors’ vaults in case of malicious actions.

Oracle and price manipulation risk: Inconsistent or corrupt pricing information could lead to unintended synthetic supply shock or the insolvency of certain markets. Enjoyoors integrates 2 oracle providers: PYTH and Chainlink, as well as organizes direct market feeds from a number of CEXes and DEXes. All of these price feeds are then medianized and monitored real time for outlier price detection. The failure of any single one and even several of them simultaneously will not materially affect the Enjoyoors protocol.

Synthetic supply shock risk: Big chunk of gigaAsset supply entering the market in a short period of time could affect its peg. This could happen due to a major slashing event, liquidation of the whale position on the lending protocol, or just because a malicious actor decided to attack the stability of Enjoyoors’ gigaAsset. Since Enjoyoors protocol controls gigaAssets’ circulating supply - it can decide how and on what terms to bootstrap the Сurve pool (making sure that substantial synths supply chunk in the pool is controlled by the IPA). Additionally, Enjoyoors governance can limit liquidity exposure to certain protocols to cap the amount of potential gigaAsset circulating supply entering the market.